Artesian Water Seeks Rate Increase to Support Infrastructure and Compliance Enhancements

$ARTNA

Artesian Water Company, Inc., a subsidiary of Artesian Resources Corporation (Nasdaq: ARTNA), has officially filed a request with the Delaware Public Service Commission (PSC) to increase its customer rates. The company is seeking a 12.41% rate adjustment, which would translate into an additional $10.8 million in annual revenue. The proposed increase includes a shift in the Distribution System Improvement Charge (DSIC) from 1.66% to 0.0%, resulting in a net increase of approximately 10.75% to existing customer bills.

This request is part of Artesian’s broader strategy to continue investing in its water utility infrastructure. The company has already invested more than $58.5 million since its last base rate filing, focusing on critical system improvements necessary to ensure reliable service and compliance with increasingly strict water quality regulations. This includes proactive measures to address per- and polyfluoroalkyl substances (PFAS), with Artesian already installing treatment systems for PFAS before final regulatory mandates come into effect.

If approved, the proposed increase would raise the monthly bill for an average residential customer using 4,000 gallons of water per month from $52.94 to $59.76. This amounts to an increase of about $0.23 per day, which still equates to a cost of less than $2 per day for water, or approximately 1.5 cents per gallon.

Nicki Taylor, President and CEO of Artesian, emphasized the company’s long-standing commitment to delivering high-quality drinking water and fire protection services. “For 120 years, Artesian has been dedicated to providing reliable services to its customers. Continuing this commitment requires ongoing investments in infrastructure to keep systems resilient,” Taylor said.

The rate increase proposal is currently under review by the PSC and the Division of the Public Advocate (DPA), who are ensuring that all stakeholder interests are considered. This review process is an essential part of maintaining fair and transparent utility practices, safeguarding the interests of both the utility provider and its customers. The final decision on this rate increase will likely have significant implications for Artesian’s future operational capabilities, particularly in terms of maintaining its high standards and meeting the evolving needs of its service areas.

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